Tata Power plans Rs1,200 crore preferential issue to Tata Sons
23 May 2007
The company will issue up to 98.94 lakh equity shares and a maximum of 1.03 crore convertible warrants to Tata Sons on preferential basis, the company said in a filing with the Bombay Stock Exchange (BSE).
The
warrants can be converted into shares after April 1, 2008
but not later than 18 months from the date of issue of
the warrants.
The issue price of the shares and warrants would be set
later, the company said in a statement to the stock exchange
late on Tuesday. Shareholders would have to approve the
issue plan.
Tata Sons, the holding firm of the Tata Group, holds 28.74 percent in Tata Power as of March 31, stock exchange data showed.
Tata Power''s shares closed at 610.65 rupees on Tuesday. Tata Power will seek shareholders'' approval for the issue through postal ballot, the release added.
Based on its current share price of Rs610.65 on the BSE, Tata Power could raise more than Rs1,200 crore through the exercise.
Tata
Power, the country''s largest private power utility, had
recently acquired
three Indonesian coal firms for $1.1 billion and is also
setting up various power projects in the country including
the 4,000 MW Mundra Ultra Mega Power Project.
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